The Life and Health Actuarial Task Force has released documents relating to work on a life products valuation manual section.
The documents concern VM-20: Requirements For Principles-Based Reserves for Life Products.
Documents now available on the LHATF section of the National Association of Insurance Commissioners website include presentations by John Bruins of the American Council of Life Insurers, Washington.
Advocates of principles-based reserving want to move toward allowing for flexible use of modern statistical forecasting methods, and away from relying on un-changing formulas. The LHATF and other arms of the NAIC, Kansas City, Mo., have been working for years on efforts to prepare for a PBR shift.
Bruins’ latest submission deals with the net premium reserve component of PBR calculations.
The LHATF also has posted drafts of the manual section and other documents relating to VM-20 and other valuation manual sections.
The documents are available here.